Man GLG Flexible Bond I H USD Acc LU

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1 LU Page 1 of 9 2 Jun :, UTC- 5 Morningstar Category Global Flexible Bond - Category Index BBgBarc Global Aggregate TR Hdg USD Total Assets 21.1 Current Yield % 4.16 Inception Date 18/1/13 Domicile/ Currency LUX/USD Morningstar Rating QQQ Fixed Income Style Ltd Mod Ext Interest Rate Sensitivity People Credit Quality High Med Low Andy Li 4/14 Simon Finch 4/18 Total Named Managers 2 Morningstar Pillars Process p. 2-3 Performance p. 4 People p. 5 Parent p. 6 Price p. 7 Negative & ) ( & ) 15K 1K 5K Performance 31/1/18 Growth of 1, Annualized Value USD Ret % Fund 11, Category 11, Index 11, Full Manager Change Partial Manager Change Morningstar Rating QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQ QQ Quartile Rank in Category Percentile Rank in Category % Total Return (USD) /- Category /- Index Process Fixed Income Style Box Asset Allocation Stock Bond Cash Other Top 3 Fixed Income Super Sectors Price TER/OGC Analyst View Ashis Dash, CFA, Associate Director Settling in. The conduct of Morningstar's analysts is governed by Morningstar's Code of Ethics, Securities Trading and Disclosure Policy, and Morningstar Manager Research Integrity Policy. For informaton regarding conflicts of interest, please click Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ Á The for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the for a fund. s are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Neutral represents funds in which our analysts don t have a strong positive or negative conviction over the long term (defined as a full market cycle or at least five years) and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term (defined as a full market cycle or at least five years). Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit 2 Jun, 218 An experienced credit investor, Simon Finch, has taken over the reins of this relatively adventurous global flexible bond fund. Finch joined Man GLG in April 218 in the newly created role of the CIO of credit. He took over as lead manager of this fund and its UKdomiciled version, Man GLG Strategic Bond, later that month after previous manager Jon Mawby resigned. He brings a wealth of experience having spent 25 years investing across credit markets. His diverse experience is complemented by Andy Li s derivatives-focused expertise. Li joined as a comanager in May 214 and provides some continuity through his role here. The two leverage Man GLG s 45-strong fixed income platform that includes sector specialist teams. The managers continue to employ a highconviction approach, dynamically moving the fund's duration and asset allocation across global fixed-income markets based on their top-down and bottom-up views. However, there are likely to be some changes under Finch. For example, he expects to hold a higher exposure to the US over a cycle and hold larger positions in higher-conviction high-yield bonds than the fund has historically held. He has cut back on credit risk significantly since taking over the fund on April 23, 218, primarily by reducing the fund's financials and high-yield debt exposure (areas in which the fund held large allocations over the past few years). We expect these changes to result in a somewhat differentiated portfolio than under Mawby. Meanwhile, a target of Libor plus 5% per year was also added to the fund's previous objective of delivering top-quartile risk-adjusted returns (as measured by its Sharpe ratio) within the Lipper Global Bond USD peer group over a cycle. Given Finch's limited track record here, it's too soon to draw any meaningful conclusions. Despite his considerable experience, it's still early days for him at Man GLG. We need to see how well he utilises the firm's fixed-income resources, how his partnership with Li develops, and how the portfolio evolves before building conviction. We give the fund a of Neutral for the time being.

2 LU Page 2 of 9 2 Jun :, UTC- 5 Process: Approach Global Flexible Bond - BBgBarc Global The fund s investment approach is likely to evolve under Simon Finch. Process Pillar 2 Jun, 218 This high-conviction strategy invests across the global fixed-income spectrum and makes extensive use of credit and interestrate derivatives to express long and short ideas. The managers dynamically move the fund s asset allocation and duration (within a wide -3 to 8-year range, though historically it has varied between 1 Style Surveyed 3/9/18 Fixed Income Style Box Ltd Mod Ext Interest Rate Sensitivity Style Box Factors Credit Quality High Med Low History Style Bonds % Bonds % is based on portfolio data. Credit Quality Fund 3-Yr Avg Category Average Credit Quality BB BB BB Investment Grade % Below Invest Grade % Interest Rate Sensitivity Avg Effective Duration Avg Modified Duration 3.5 Avg Effective Maturity 4.48 Income 31/1/18 Fund 3-Yr Avg Category Current Yield 12-Month Yield. Average Coupon Average Coupon 3/9/18 and 8 years) based on where they see the best risk-adjusted opportunities; this could be a function of their top-down views and/or bottom-up ideas. They work closely with specialist teams inhouse in formulating their macro views and more so for the sector teams expertise in credit selection within specific areas such as high yield. They also leverage external consultants, Moody s Analytics Knowledge Services, for quantitative aspects of the credit analysis process. However, there are likely to be some changes under Simon Finch. He expects to hold a Asset Allocation 3/9/18 Current Allocation 3-Year Average Net Assets % Fund 3-Yr Avg Category Equity Fixed Income Cash Other Regional Exposure 3/9/18 Top 5 Countries Bonds % Fund 3-Yr Avg Category United States United Kingdom Australia Norway Japan higher exposure to the US over a cycle than the fund has historically held. He also aims to build larger positions in higher-conviction high-yield bonds than in the past, and exploit areas such as convertibles and asset-backed securities more given his familiarity with these. We expect these changes to result in a somewhat differentiated portfolio than under the previous manager. Given the fund's wide remit, we also need to see how well these are implemented over a diverse range of market conditions. We rate the Process Pillar at Neutral. Sectors 3/9/18 Fixed Income Super Sectors Assets % Fund Category fi Other Fixed Income Sectors Fund 3-Yr Avg Category Government Treasury Inflation Protected. 2.7 Agency/Quasi-Agency. 2.2 Other Government Related* Corporate Corporate Bond Bank Loan..1 Convertible Preferred 1.3. Securitized Agency Mortgage Backed Non Agency Residential. 1.8 Commercial MBS. 1.7 Asset-Backed Covered Bond..3 Municipal..2 fi Cash & Equivalents Other

3 LU Page 3 of 9 2 Jun :, UTC- 5 Process: Portfolio Global Flexible Bond - BBgBarc Global Simon Finch has reduced risk since taking over the portfolio. Process Pillar 2 Jun, 218 The fund entered 218 with heavy credit risk through sizable allocations to subordinated financials, corporate hybrids, and high-yield debt. While these had been the key drivers of returns in 217, they are expected to struggle during credit risk sell-offs, such as in February-March 218. After taking over the fund on April 23, 218, Credit Quality Surveyed 3/9/18 Bonds % Fund Category Simon Finch reduced exposure to these areas along with a broad risk-reduction across the portfolio. While financials remained the largest allocation within the fund, the sector had been cut to 31% as at May 218 from 44% in January 218; high-yield credit was also reduced from 33% to 17%. Meanwhile, the fund s flat position in government bonds had been increased to a 2% long. Cash levels had been increased from around 2% to 13%. All these changes resulted in the fund s net market exposure dropping from 125% to 79% Bond Maturity 3/9/18 Assets % Fund Category (the fund s gross notional exposure is typically kept within 3% and net between 8% and 11%, with currency exposures usually hedged back to US dollars), while its credit sensitivity was almost halved from early 218 to the end of May. The fund s duration had been maintained between one and three years since late 216 based on the managers' view that synchronised global growth would lead to bond yields moving up. Finch maintained that stance, with duration standing at 1.44 years. Coupon Range 3/9/18 Assets % Fund Category AAA AA A BBB BB B <B NR % to PIK Credit Quality Fund 3-Yr Avg Category AAA AA A BBB BB B Below B Not Rated Portfolio Holdings 3/9/18 Maturity (Years) Fund 3-Yr Avg Category 1 to to to to to to to Over Coupon Range Fund 3-Yr Avg Category % or Paid In Kind to to to to to More than 1..3 Bond Holdings Equity Holdings Other Holdings Assets in Top 1 Holdings Turnover Ratio (Reported) Current Yield % Top 1 Holdings Country Currency Assets % Super Sector Primary Sector Secondary Sector United States Treasury Notes 2.75% USA USD Government Government Treasury Ctd Basket Long Gilt Future Dec18 (Icf) GBR -9.5 Government Government Related Treasury Future Ctd Basket Euro-Oat Future Dec18 (Eux) FRA Government Government Related Treasury Future Australia (Commonwealth of) 2.25% AUS AUD 4.86 Government Government Treasury BNP Paribas.8% FRA USD 2.24 Corporate Corporate Bond Financial Services ALTICE FRANCE S.A 7.38% FRA USD 2.6 Corporate Corporate Bond Communication Services Softbank Group Corp 6.12% JPN USD 1.88 Corporate Corporate Bond Communication Services Informa Plc 3.12% GBR GBP 1.66 Corporate Corporate Bond Consumer Cyclical

4 LU Page 4 of 9 2 Jun :, UTC- 5 Performance Global Flexible Bond - BBgBarc Global Track record under the new lead manager is limited. Performance Pillar 2 Jun, 218 The fund aims to deliver top-quartile risk-adjusted returns (as measured by its Sharpe ratio) within the Lipper Global Bond USD peer group over a market cycle. A return target of Libor plus 5% per year on a five-year rolling basis was also added in late 217. That said, the track record under Simon Finch is much too short to be meaningful. Moreover, while performance under Jon Mawby s tenure (January 213-April 218) was ahead of its Morningstar Category, it was more in line with the category on a risk-adjusted basis. We rate the Performance Pillar Neutral. The fund got off to a good start under Mawby. A move away from sovereign debt into less rate-sensitive areas such as floating-rate notes and high-yield, and a low-duration stance (typically below three years) aided in 213. Then, a rotation away from US high-yield into European financials over 214 proved helpful. However, shorts in emerging markets and a move up in the fund s duration as government bond markets sold off hurt returns, particularly in the first half of 215; additionally, hedges around the Grexit scare also proved detrimental. The fund s exposure to financials hurt in 216 but contributed strongly in 217. However, it was again the chief detractor to date in 218 with the fund s holdings in discounted perpetual bank securities hurting the most (especially in May); exposure to high-yield and emerging-markets debt also detracted. Morningstar Rating and Risk 31/1/18 Period Morningstar Ret vs Cat Morningstar Risk vs Cat Morningstar Rating 3 Years Avg High QQ 5 Years Avg Above Avg QQQ 1 Years Overall Rating Risk Analysis 31/1/18 3-Year Return and Risk Analysis Total Return % QQQ Fund Category Index & ) ( & ) History 31/1/18 12-Month Rolling Return % Fund Full Manager Change Partial Manager Change Quartile Rank in Cat Percentile Rank in Cat % Total Return USD /- Category /- Index..... Income Return Standard Deviation 3-Year Risk Measures Fund Category Index Standard Deviation Sharpe Ratio R-Squared Beta Alpha Maximum Drawdown Fund Category Index Max Drawdown (%) Peak Date 2/18 5/15 5/13 Valley Date 6/18 2/16 6/13 Max Drawdown (Months) Upside/Downside Fund Category Index Upside Capture Ratio Downside Capture Ratio Returns 31/1/18 Trailing Returns Total Investor Rank in Cat Cat Index 1 Year Years Years Years Tenure 4/ Inception 1/ Rolling-Returns Summary 18% Month Rolling Periods 34 Observations, 2 Years The shading and percentages correspond to how often the fund returns landed in each category quartile. Income and Capital Returns Return % Income Return Capital Return Year /18 Income Income % Rank in Cat Capital Capital % Rank in Cat /

5 LU Page 5 of 9 2 Jun :, UTC- 5 People Global Flexible Bond - BBgBarc Global Experienced credit investor Simon Finch has taken over the reins, but it s early days for him at Man GLG. People Pillar 2 Jun, 218 Simon Finch joined Man GLG in April 218 in the newly created role of CIO of credit. He took over as lead manager of the fund later that month after Jon Mawby, who had served as the lead here since January 213, resigned. Finch brings a wealth of experience. He previously was the CIO at CQS and ran the firm's Management Team multi-asset credit fund. He has 25 years' experience investing across credit markets, including investment-grade, high-yield, loans, convertibles, and structured credit. He is supported by Andy Li, who previously worked with Mawby at ECM before joining as a comanager here in May 214. Li's experience in managing derivative overlay strategies is valuable here, particularly in developing capital-protection strategies. The two leverage Man GLG's wider fixedincome platform, which includes specialist teams in US credit, European high yield, emerging markets, structured credit, financials, and convertibles. However, the fund's management team has seen some changes in recent years with Steve Roth (who helped with high-yield credit) leaving in June 217 and Mawby in April 218. Moreover, despite Finch's experience, it's still early days for him at Man GLG. We need to see how well he utilises the firm's fixed-income resources, how his partnership with Li develops, and how his workload evolves given his wider responsibilities as the CIO of credit. We rate the People Pillar at Neutral for the time being. Experience and Asset Load Total AUM Bil USD in Funds Managed 2+ Number of Managers Longest Tenure Years Manager Retention Rate 5-Year % Average Manager Tenure 2.58 Years 15 1 Advisor Subadvisor GLG Partners LP Tenure Years Andy Li 4/14 to Present Years on Managed Funds Years on Fund 4 4 Fund AUM Current Funds Managed Largest Funds Managed Tenure Dates Role Fund Size Investment Tenure Index Man GLG Strategic Bond Fund 4/14 to Present 1 of Man GLG Flexible Bond 4/14 to Present 1 of Man GLG Corporate Bond Fund 4/14 to Present 1 of Simon Finch 4/18 to Present Years on Managed Funds Years on Fund 9 Fund AUM Current Funds Managed Largest Funds Managed Tenure Dates Role Fund Size Investment Tenure Index Man GLG Strategic Bond Fund 4/18 to Present 1 of Man GLG Flexible Bond 4/18 to Present 1 of

6 LU Page 6 of 9 2 Jun :, UTC- 5 Parent Global Flexible Bond - BBgBarc Global Man GLG benefits from a depth and breadth of resources, but its investment culture is still evolving. Parent Pillar Assets By Region, By Domicile Bil USD 15 Jun, 217 Man GLG has been through a series of corporate changes, resulting in the asset-management firm we see today. It started life as GLG Partners, which was known primarily for its hedge fund strategies until its acquisition of SGAM in April 29. This substantially bolstered its long-only asset base. It was subsequently acquired by Man Group in 21. GLG Partners was fined for insider trading and faced regulatory proceedings (all settled without charge) during the 2s. Since becoming Man GLG, steps have been taken to improve its investment culture, including the hiring of Teun Johnston in 212. Johnston joined as head of product strategy and became CEO in 215. He has focused on ensuring that products best reflect existing areas of expertise and that there is an increased level of collaboration across teams. The portfolio managers' remuneration is Fund Family Details Europe (*) Breakdown Rating Assets % based mainly on the commercial success of their strategies. This can result in a focus on assetgathering over investment excellence, although part of the managers' bonuses is in the form of deferred purchases of the funds that they run, providing investor alignment. We believe client communication to be above average, helped by frequent portfolio disclosures/reports and an accessible, informative website. Overall, we welcome the evolution of the group's investment culture and note its depth and breadth of resources, but we believe that there is Morningstar Rating Breakdown Rating Assets % Americas. Europe & Africa 17.5 Asia & Australia. Asset Class Breakdown Europe (ex Money Mkt) Fund Family Details Europe Assets Bil USD 1 Top Performing Funds Category Name Fund Size Return % 3-Year Rank in Cat 3-Year Largest Funds Category Name Fund Size Return % 3-Year Rank in Cat 3-Year Asset Class Assets Bil USD Assets % Equity Fixed Income Allocation Convertibles.7 4. Property Alternative Commodities Recent Fund Launches Category Name Fund Size Return % Inception Inception Date (*) All data is based on Branding name and refers to funds domiciled in Europe.

7 LU Page 7 of 9 2 Jun :, UTC- 5 Price Global Flexible Bond - BBgBarc Global Expensive compared with peers TER/OGC 1..8 Expense History TER/OGC Price Pillar Negative 2 Jun, 218 The fund s.84% ongoing charge on its I share class (as at February 218) was higher than the.75% median for similar clean share classes within the Global Flexible Bond Morningstar Category, leading to its Negative Price Pillar rating TER/OGC Net Assets Net Flows Expense Breakdown Fee Level Ongoing charge Ongoing charge 8/2/18.84 Fee Level Peer Group Selected Components Max Management Fee.6 Performance Fee Fee Level Breakpoints High >. Above Average.-. Average.-. Below Average.-. Low <. Fund.84 Peer Median Share Class Information Share Class Identifier Morningstar Category TER/OGC Max Mgmt Fee Performance Fee Maximum Inital Charge Man GLG Flexible Bond I H USD LU Global Flexible Bond - USD ,.1 Acc Hedged Man GLG Flexible Bond I H JPY Acc LU Other Bond ,,.13 Man GLG Flexible Bond D H USD LU Global Flexible Bond ,.4 Acc Man GLG Flexible Bond I EUR Acc LU Global Flexible Bond - EUR Hedged ,.1 Man GLG Flexible Bond D H CHF Acc LU Global Flexible Bond - CHF Hedged ,.1 Man GLG Flexible Bond D H USD IncLU Global Flexible Bond ,. Minimum Initial Inv Assets Bil USD

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With those fundamental strengths, we expect these funds will outperform their relevant performance benchmark and/or peer group within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Bronze Represents funds that have advantages that clearly outweigh any disadvantages across the pillars, giving analyst the conviction to award them a positive rating. We expect these funds to beat their relevant performance benchmark and/ or peer group within the context of the level of risk taken over a full market cycle (or at least five years). Neutral Represents funds in which our analysts don t have a strong positive or negative conviction. In our judgment, these funds are not likely to deliver standout returns, but they aren t likely to seriously underperform their relevant performance benchmark and/or peer group either. Limited. 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Morningstar Star Ratings are in no way to be considered a buy or sell signal nor should be viewed as a statement of fact. Equity-Related Data Points The Report lists the fund s top ten holdings as of the dated noted. For each underlying holding, a series of data points is provided including, where applicable, that security s Economic Moat as of the date noted. Economic Moat The concept of an economic moat plays a vital role in our equity analyst s qualitative assessment of a firm s long-term investment potential, but also in the actual calculation of its fair value estimate. An economic moat is a structural feature that allows a firm to sustain excess profits over a long period of time. We define economic profits as returns on invested capital (or ROIC) over and above our estimate of a firm s cost of capital, or weighted average cost of capital (or WACC). Without a moat, profits are more susceptible to competition. We have identified five sources of economic moats: intangible assets, switching costs, network effect, cost advantage, and efficient scale. Companies with a narrow moat are those we believe are more likely than not to achieve normalized excess returns for at least the next 1 years. Wide-moat companies are those in which we have very high confidence that excess returns will remain for 1 years, with excess returns more likely than not to remain for at least 2 years. The longer a firm generates economic profits, the higher its intrinsic value. We believe low-quality, no-moat companies will see their normalized returns gravitate toward the firm s cost of capital more quickly than companies with moats. For more information about methodology in analysing stocks, please go to For Recipients in Australia: This Report has been issued and distributed in Australia by Morningstar Australasia Pty Ltd (ABN: ; ASFL: 24892). 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